This lies inside the program itself,....and yes its possible to 'virtualize' the internet connection or the activation process by fooling the program as you said, but to do so, the program file has to be hacked internally(patched after some debugging).

If you have a specific program to crack, you can make a thread for it here in the forum and PM me for the thread's link .

no i dont have any specific program for it ,,just wondered about the idea,,btw im still a noob on cracking,,hehe taking my baby steps still..thanks for the info bro
do u have any programs in mind in which this technique may be applied?

i think this a couple of years ago when i was in the cracking scene. made the program look for the file on the local computer insted online and made the whole program full on offline.